July and August are typically slow months in real estate and this summer is no exception. The Bank of Canada's decision to bump up interest rates has further put a damper on the pace of the market. I suspect we will see more of the same until consumers feel like rates have plateaued and there is promising news about inflation and the overall economy.
I am seeing many new listings, some of which I’m certain are owners who can no longer afford their homes given the cost to borrow, as well as investors who can't net a positive cash flow. Although sales are up on a year-over-year basis, these sales aren't keeping up with the pace of new inventory.
If you're looking to purchase, this may be a great opportunity to keep an eye on the market over the next few months. One thing is for certain, when interest rates start to retract, things will heat up again. When that will be is the million dollar question! -Andrew
